Mandatory local insurance of marine cargo commences February 1

…govt announces at investiture of new GIA President

By Elliot WILLIAMS

Effective February 1, it will be mandatory that all commercial marine cargo imports into Ghana are insured by insurance companies domiciled and licensed in the country. This measure is intended to protect shippers, deepen local participation, retain insurance premiums within the economy and support sustainable industry growth. This directive is to be enforced by the Ghana Revenue Authority and the Bank of Ghana.

This was announced by David Klotey Collison, Coordinating Director (Operations) at the Ministry of Finance, who was speaking on behalf of the Finance Minister, Dr. Cassiel Ato Forson, at the  12^th Presidential Investiture of the Ghana Insurance Association (GIA) held on Tuesday, January 20 at the Labadi Beach Hotel.

This decision is highly welcomed by Ghana’s insurance industry, which has pushed for it several years and will provide an early boost for the new GIA Board which is now led by Mrs. Boatemaa Barfour-Awuah – CEO of Star Assurance. She was elected earlier this year along with the four other women and six men who will make up the rest of the GIA Board for the next two years.

The Ministry of Finance used the event to unveil its impending plans for the growth and development of the insurance industry. Importantly, the new GIA Board’s tenure will coincide with the operationalisation of a two-year Insurance Sector Strengthening Strategy developed by the ministry as part of its broader Fiscal Consolidation and Economic Recovery Programme.

David Klotey Collison also revealed that government has taken note of GIA’s call for Group Life Insurance to be made compulsory, assuring that: “Government recognises the potential of this proposal, not only to safeguard livelihoods, but also to strengthen the long-term sustainability of the insurance industry. We will give this proposal due consideration in future reviews of the Insurance Act.”

He further unveiled the Finance Ministry’s plans to develop a 10-year Insurance Master Plan (IMP) this year in collaboration with industry stakeholders. The IMP will serve as a blueprint for policy, regulatory and institutional reforms aimed at addressing structural challenges, such as low market penetration, fragmented regulatory frameworks, pricing inefficiencies and other market constraints, to enhance financial inclusion, promote innovation and competitiveness and position Ghana as a regional insurance hub.

The new GIA President, Mrs. Boatemaa Barfour-Awuah is an accomplished business executive and transformational leader, with over 18 years of experience driving strategic growth, operational excellence and digital innovation in the insurance and financial services sectors.

Appointed CEO of Star Assurance in November 2020 after gaining comprehensive hands-on experience across the Legal, Underwriting, Accounts, Business Development and Broker Relations units, she has since successfully steered the company’s evolution into become the second largest insurer in Ghana.

She has taken over the mantle from Seth Kobla Aklasi, the CEO of Ghana Reinsurance Company and the immediate outgone GIA President, who remains on the board as an ex-officio member.

The other members of the new board include:  Daniel Boi Addo, CEO of Hollard Insurance; Mrs. Mercy Naa Koshie Boampong, CEO of Serene Insurance; Ernest Frimpong CEO of Bedrock Insurance; Mrs. Akosua Ansah-Antwi, CEO of Enterprise Insurance; and Mrs Kakra Duffuor-Nyarko, CEO of Star Life Assurance.

The others are Eric Ato Botchway, CEO of Pinnacle Life Insurance; Mrs. Maame Duffie Achampong-Kyei Obeng, CEO of GLICO Life Insurance; Dr. Kingsley Kwesi Kwabahson, CEO of GIA; and Sheriff Abudu.

GIA’s membership comprises 16 life insurance firms, 25 general (non-life) insurance companies and four reinsurance firms.

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